Evonik’s majority owner RAG sells stake worth EUR632 mn

RAG-Stiftung, the public sector foundation that controls German speciality chemicals maker Evonik, is selling a 5.4% stake in the company to further diversify its holdings but has vowed to remain a major investor. It has placed in total EUR632.5 million in shares of Evonik  for a price of EUR25.30 per share.

The accelerated bookbuild offering, run by Bank of America and UBS Investment Bank, would cut the RAG’s stake to 58.9% in Evonik. In addition, RAG has three outstanding bonds which are exchangeable into shares of Evonik.

RAG, which has gradually reduced its controlling stake over the last few years, said it would remain a long-term owner of a “significant” stake in Evonik and it supported the group’s management.

Bernd Tönjes, Chairman of the Board of Executives of RAG-Stiftung, said “Evonik has made substantial progress in its transformation into a best in class specialty chemicals company and we are fully supportive of the management’s strategy and long-term value creation. After reducing our holding in Evonik today we intend to continue to be a long-term, significant shareholder, with an interest in a positive share price development of Evonik. The Placement is also expected to enhance the free-float and liquidity in the shares of Evonik Industries AG.”

Jürgen Rupp, Member of the Board of Executives of RAG-Stiftung in addition said: “RAG-Stiftung’s long-term goal is a diversification of its asset base, which is a core part of its strategy. Since its establishment RAG-Stiftung increased its asset base to EUR18.6 billion. The EUR1 billion raised from the previous transaction in September 2018 has been fully deployed and RAG-Stiftung intends to use the proceeds of this placement to fund investments and refinancing of liabilities.”

RAG-Stiftung has agreed to a lock-up undertaking ending 90 calendar days after the closing date of the offering, of its remaining holding of ordinary shares in Evonik, subject to customary exceptions and waiver by the Joint Bookrunners.


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